E-Scooters: A fun mode of transport or a dangerous nuisance?

CTP Insurance

minutes reading time

DATE PUBLISHED: August 20, 2024

key takeaways

  • The introduction of electric scooters in Australia has led to a rise in accidents and injuries, creating a complex legal landscape.
  • Injured parties may struggle to find compensation through traditional channels like CTP insurance, as E-scooters are not registered and thus not covered under typical motor vehicle schemes.
  • The South Australian Government is considering legislative reforms to address the use of E-scooters, including potential changes to registration, insurance requirements, and public use regulations.

In recent years, various public Electric Scooter (E-Scooter) Trials have been implemented across Australia. With the use of a mobile app, E-scooter companies have allowed and encouraged ordinary Australians to rent their E-scooters in public to get them to places quicker or simply be a source of entertainment between friends on a night out. While some may see these E-scooters as a fun, environmentally friendly and easy mode of transport, others see them as a dangerous nuisance.

Since these trials begun, there have been multiple E-scooter accidents causing serious injuries and even death to those involved. This has opened a legal conundrum. Who can injured parties sue for compensation?

What are the laws surrounding E-scooters? 

E-scooter laws vary from state to state and historically have been quite strict. Currently in South Australia, privately owned E-scooters cannot be used on public roads or footpaths and are restricted to private property.

However, hirable E-scooters from multiple companies are available for public use. Select companies have been given business permits by councils to trial their E-scooters in certain restricted areas across the city. South Australians can hire E-scooters short-term and use them in designated areas but must abide by various rules such as sticking to footpaths and wearing a helmet.

Given E-scooters have only come to use in public spaces recently, the law surrounding them is largely uncertain.

What avenues does an injured party have to sue?

1) At fault person – The person who has caused the accident and resultant injuries can be sued for compensation. Although, it is extremely common for wrongdoers to flee the scene of accidents, leaving injured parties no one to sue. Even if the at fault party is known, they may not have the funds to cover the compensation awarded to the injured party, which will ultimately leave the injured party no better off.

2) Compulsory Third Party Insurance (CTP) Scheme – CTP Insurance schemes across the country compensate those injured as a result of motor vehicle accidents. However, a key component of the CTP scheme is that motor vehicles require registration, with registration automatically attracting CTP Insurance coverage. Interestingly, under South Australian legislation, whilst E-scooters are considered motor vehicles, they are not registrable due to them not meeting the Australian Design Rules. The Motor Vehicle Regulations 2010 (SA) also exempts E-scooters from being registered, but allows them to be used in public if the owners of these E-scooters have in place a policy of public liability insurance in relation to any death or bodily injury arising out of the use of E-scooters. Therefore, given that E-scooters cannot be registered, it can be assumed that it was not envisioned that CTP insurance would cover any injury, loss and damage arising from the use of E-scooter devices.

3) E-scooter company – Current E-scooter companies trialing their scooters in South Australia appear to have their own insurance in place, whether that be public liability insurance or specifically personal accident and third-party liability cover. This is required by the Motor Vehicle Regulations 2010 (SA) which obligates E-Scooter companies to have public liability insurance in place up to $20 million dollars. Therefore, those injured because of an E-scooter accident can presumably claim against the E-scooter company’s insurance policy. Currently, this would appear to be the intention of current legislation and the most logical way of seeking compensation for injuries arising from E-scooter accidents.

Will legislative reform take place? 

Due to the increased use of E-scooters in public spaces and the injuries that have followed, there has been pressure on state governments to review legislation and regulations around the use of these devices.

The SA Government undertook a recent public consultation on the matter of personal mobility devices (including E-scooters), which revealed 87% of participants supported the ongoing use of E-scooters on public roads and paths.

The SA Government has hinted at introducing new laws regarding the legalisation of private E-scooters in public. It will be interesting to see how the Government deals with issues such as registration, CTP insurance and other requirements for insurance, as this will impact the way injured parties may be able to seek compensation in the future.

get in touch with us!

If you require any assistance or have any questions,  please fill out the enquiry form below and mention this article for an obligation-free appointment.

Don't Miss a Beat

Subscribe to MCW Insights

Still Have Questions?

Make an Enquiry

E-Scooters: A fun mode of transport or a dangerous nuisance?
How to Navigate Non-Economic Loss Assessments in South Australia
Reynolds v Patel: What Is a Driver’s Duty of Care?
Razorback Road Strikes Again – Injured Driver Awarded Over $450k In Damages
There Is No Discretion in Procedure
Why No Steps in Time?
Be Wary Of Multiple Extension of Time Requests
Crime Doesn’t Pay